Singapore’s central bank has issued a request for proposal seeking qualified asset managers for its S$5 billion (US$3.8 billion) plan to boost the city state’s stock market, according to people familiar with the matter.
These people tell Asia Asset Management that some asset managers have already sent RFPs to the Monetary Authority of Singapore (MAS) to manage funds under the equity market development programme.
Launched in February, the programme aims to channel funds to asset managers with strong track records for investing in the local stock market.
It was proposed by the MAS equities market review group, set up last August to recommend measures to enhance the attractiveness of the local stock market.
The programme is funded through the central bank and the Financial Sector Development Fund (FSDF), a 26-year old fund managed by MAS to promote a strong and vibrant international financial centre in Singapore.
It was among the first set of proposals from the equities market review group, which also recommended corporate tax rebates for Singapore-based companies seeking primary or secondary listings in the city state, a 5% concessionary tax rate for fund management firms, and expanding the central bank’s research development grant to include coverage of pre-initial public offer companies.
Spokespersons for MAS did not immediately respond to questions from AAM.
As of March 31, there were 613 companies listed on the Singapore bourse with total market capitalisation of S$890.5 billion. The number of listed firms was down from 617 last year and 632 in 2023.
There were only four new listings in 2024 compared to 55 in neighbouring Malaysia and 41 in Indonesia.
According to figures provided to AAM by Morningstar, assets under management of the 15 Singapore equity funds tracked by the investment data firm rose from $4.7 billion at the end of 2024 to $4.94 billion as of end-February 2025. The funds drew $101.28 million of net inflows through the first two months of this year.
There was a sharp increase in money flowing into the funds over the last two years, with net inflows jumping from $6.59 million in 2023 to $119.12 million in 2024.
